Farmers in the United States have remained fundamentally supportive of the Trump administration. They continue to push for an end to the trade dispute, which is having such a huge impact on U.S. agriculture. The trade wars have resulted in losses of the farmer’s personal income. They have found themselves in farm debts to a point that they can longer access credit facilities.
The fall in the farmer’s income is worsening the condition of the nation’s total personal income growth. The farmers have also had to deal with low commodity prices accelerated by natural disasters such as the spring floods. They are no longer making purchases from local suppliers like it has been the case in previous years.
The number of agricultural producers may be very small compared to those in employment. But even then they have a significant contribution to the economy. Thus, they feel it is the high time Trump concluded his trade wars with the likes of China, Canada, and Mexico among other nations. However, the president is convinced that his trade wars will bring a boon to farmers.
Nonetheless, it seems like the Trump administration has heeded the call from farmers to help them reign back. In a previous instance, the producers have received compensation worth $12 billion for the losses incurred as a result of the trade wars. The amount of compensation may not have been anywhere near what they lost but it was better than nothing.
Even then, the White House has given its commitment to help in the agricultural sector. There is notable progress from negotiations between the US and Beijing. The two seems to have reached an amicable agreement on how they will handle intellectual property. This will bring to an end the conflict brought about by the tit-for-tat tariffs. Beijing imposed tariffs on agricultural goods imported from the US including pork, grain sorghum, and soybeans.
These are positive news for the farmers and any federal aid to them will go a long way in boosting their personal income. Besides, the continued conflict could eat up to other areas, which are also contributing to the economy.
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